Gold prices descended more than 1% on Monday, as the relaxation of commercial tensions between the United States and China promoted the appetite of investors for risk and reduced the demand for shelter assets such as the ingot. To this was added the pressure of a stronger dollar.
Cash gold dropped 1.4% to $ 3,272.89 La ounce, at 0220 GMT. The ingot reached a historical maximum of $ 3,500,05 on April 22.
Gold futures in the United States yielded 0.4%, standing at $ 3,283.70.
The US dollar was appreciated 0.3% in front of a basket of currencies, which makes the ingot more expensive for foreign buyers. [USD/]
“It is probably fair to say that financial markets, and risk assets in particular, feel more calm about the tariff panorama now compared to the frantic first week of April,” said Tim Waterer, head analyst at KCM Trade. [MKTS/GLOB]
“The White House comments last week have fed the optimism that a commercial agreement between the US and China could be completed, which has reduced the demand for refuge assets such as gold.”
The US president, Donald Trump, declared that tariff conversations with China were being held.
The Trump administration showed last week its willing week to de -display the commercial war between the two greatest economies in the world, which has generated fears of recession.
On Friday, China exempt some US imports from its high tariffs, although Trump’s statement quickly denied that there were ongoing negotiations.
Gold, traditionally considered as coverage against economic and political uncertainties, thrives in low interest rates.
Meanwhile, many participants in the spring meetings of the International Monetary Fund and the World Bank stated that the Trump administration remained divided regarding their demands to the commercial partners affected by their broad tariffs.
Among the main economic data that will be published this week are the Employment Offers Report on Tuesday, the US personal expenses of the US consumption on Wednesday and the non -agricultural payroll report on Friday. These reports could provide more information on the perspectives of the monetary policy of the Federal Reserve.
As for other metals, money in cash fell 1.2% to $ 32.70 the ounce, platinum receded 0.6% to $ 965.70 and the paladium lost 1% to $ 939.00.
